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Govt may revoke permits of ‘unproductive’ oil and gas companies

The energy minister says the government is thinking of pulling the operating permits of oil and gas companies with idle projects to accelerate domestic output by 2030 as part of a broader strategy to reduce the country's reliance on costly imports.

Divya Karyza (The Jakarta Post)
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Fri, January 17, 2025

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Govt may revoke permits of ‘unproductive’ oil and gas companies An offshore rig operates on April 2, 2023, in an oil and gas field managed by Pertamina Hulu Energi Offshore North West Java (PHE ONWJ) off the coast of Indramayu, West Java. (Antara/Aditya Pradana Putra)

T

he government is mulling over a plan to revoke the operating licenses of oil and gas contractors that are not managing drilling projects in Indonesia.

Energy and Mineral Resources Minister Bahlil Lahadalia said he had requested an assessment of working areas, particularly for projects with an approved plan of development (POD).

The government wanted to assess all working areas “that have secured a POD but have not become operational”, Bahlil told reporters in Jakarta on Thursday, noting that some of these projects had been idle “for more than 20 years”.

“If it is important to revoke the permit, we will consider [doing so],” he added.

Bahlil emphasized that the government was pro-businesses and would support investors as part of national efforts to boost oil and gas production but it “did not want them to control the country”.

The permit revocation policy “will apply to state-owned [and] private companies”, he said, as both types of businesses “must be regulated to establish a productive partnership”.

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The ministry is targeting an increase in oil lifting to 900,000 barrels per day (bpd) by 2029 through several measures, including accelerating auctions for working areas, according to Bahlil.

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